Maruti, Audi announce price increases; others likely to follow suit

Keys hang from the door of a Maruti Suzuki Swift car at its stockyard on the outskirts of the western Indian city of Ahmedabad April 26, 2013. Maruti Suzuki India Ltd, India's biggest carmaker by sales, reported a 79.8 percent rise in fourth-quarter net profit, boosted by strong sales of its Ertiga multi-purpose vehicle that offset a slump in compact cars. REUTERS/Amit Dave (INDIA - Tags: TRANSPORT BUSINESS)

The country’s largest carmaker Maruti Suzuki on Thursday said it will increase the prices of its vehicles next month. While the company did not share the quantum of increase planned, it said it will vary for different models.

“Over the past year, the cost of the company’s vehicles continue to be adversely impacted due to an increase in various input costs. Therefore, it has become imperative for the company to pass on some impact of the above additional costs to customers through a price hike,” the company said in a communique to the stock exchanges.

It added that the price rise had been planned for January.

Maruti Suzuki has undertaken multiple price hikes in 2021 with the total increase in vehicle prices amounting to about 5%.

Separately, German luxury carmaker Audi announced a price increase of up to 3% across its entire model range owing to rising input and operational costs.

“The Audi India strategy focuses on a sustainable business model,” said Balbir Singh Dhillon, head of Audi India. “To offset rising input and operational costs, a price correction is necessary. The new price range of our select vehicles will ensure the brand’s premium price positioning thereby assuring sustainable growth both for the brand and our dealer partners,”

Other vehicle manufactures are also expected to announce a price hike over the next few days.